DoD's $33M IT support contract for civilian HR awarded to Deloitte Consulting LLP

Contract Overview

Contract Amount: $33,176,694 ($33.2M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2021-07-06

End Date: 2023-07-06

Contract Duration: 730 days

Daily Burn Rate: $45.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CIVILIAN HUMAN RESOURCES CLOUD INFORMATION TECHNOLOGY SUPPORT SERVICES (CHRCITSS) IS SUPPORT OF CIVILIAN HUMAN RESOURCES. THE PERIOD OF PERFORMANCE IS 06 JUL 2021-05 JUL 2022. THERE IS ONE YEAR OPTION PERIOD.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $33.2 million to DELOITTE CONSULTING LLP for work described as: CIVILIAN HUMAN RESOURCES CLOUD INFORMATION TECHNOLOGY SUPPORT SERVICES (CHRCITSS) IS SUPPORT OF CIVILIAN HUMAN RESOURCES. THE PERIOD OF PERFORMANCE IS 06 JUL 2021-05 JUL 2022. THERE IS ONE YEAR OPTION PERIOD. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract value of $33.18 million over two years indicates significant investment in IT support. 3. Deloitte Consulting LLP, a large established firm, is the sole awardee. 4. The contract is for IT support services for civilian human resources, a critical function. 5. Performance period spans two years, including an option year, allowing for sustained support. 6. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 7. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: good

The contract value of approximately $33.18 million over two years for IT support services appears reasonable given the scope. Benchmarking against similar large-scale IT support contracts for civilian human resources functions within the federal government would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs for the government, as the contractor bears the risk of cost overruns. However, without detailed task breakdowns and labor rates, a definitive assessment of pricing efficiency is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The data does not specify the number of bidders, but this procurement method generally fosters a competitive environment. A competitive process is expected to drive down prices and encourage innovative solutions as contractors vie for the award. The absence of specific bidder numbers limits a deeper analysis of the intensity of competition.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it maximizes the potential for obtaining the best value through a wide range of offers and competitive pricing. This approach helps ensure that government funds are used efficiently by leveraging market forces to secure favorable terms.

Public Impact

Federal civilian employees will benefit from improved and reliable IT support for human resources functions. The contract ensures the continuity of essential IT services supporting HR operations. The services are delivered to the Department of the Army, supporting its civilian workforce. The contract supports the operational efficiency of civilian human resources departments within the DoD. Workforce implications include the potential for Deloitte to utilize its existing IT support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if transition to a new vendor is complex or costly.
Reliance on a single large contractor may limit future flexibility in service delivery models.
Ensuring adequate performance monitoring and quality control for IT services is crucial.

Positive Signals

Award to a well-established contractor like Deloitte suggests a high likelihood of successful service delivery.
Firm Fixed Price contract type provides cost certainty for the government.
Full and open competition generally leads to better value and service quality.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on IT support services for human resources. The market for IT support services is vast and highly competitive, with numerous large and small businesses offering a wide array of solutions. Federal spending in this area is substantial, driven by the need to modernize systems, enhance cybersecurity, and improve operational efficiency across agencies. Comparable spending benchmarks would typically involve analyzing IT support contracts for similar-sized agencies or departments with comparable HR functions.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. The award to Deloitte Consulting LLP, a large business, suggests that the primary focus was on obtaining services from a capable provider through open competition rather than specifically targeting small business participation. This means that opportunities for small businesses to directly benefit from this specific contract as prime contractors are limited, though they might participate as subcontractors if Deloitte chooses to engage them.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army's contracting officers and program managers responsible for civilian human resources IT support. Performance standards and deliverables would be outlined in the contract, with regular reviews to ensure compliance. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

DoD Civilian Human Resources IT Services
Federal Civilian HR Technology Contracts
IT Support Services for Government Agencies
Cloud Information Technology Support Services

Risk Flags

Contract awarded to a single large business.
No specific small business subcontracting goals mentioned.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.2 million to DELOITTE CONSULTING LLP. CIVILIAN HUMAN RESOURCES CLOUD INFORMATION TECHNOLOGY SUPPORT SERVICES (CHRCITSS) IS SUPPORT OF CIVILIAN HUMAN RESOURCES. THE PERIOD OF PERFORMANCE IS 06 JUL 2021-05 JUL 2022. THERE IS ONE YEAR OPTION PERIOD.

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $33.2 million.

What is the period of performance?

Start: 2021-07-06. End: 2023-07-06.

What is Deloitte Consulting LLP's track record with similar IT support contracts for federal civilian human resources?

Deloitte Consulting LLP has a significant track record of providing IT and consulting services to various federal agencies, including the Department of Defense. Their experience often encompasses large-scale IT modernization, cloud services, and support for critical business functions like human resources. While specific details on past civilian HR IT support contracts are not provided here, Deloitte's general profile suggests they possess the capabilities and experience to handle such requirements. A deeper dive into their past performance evaluations and contract history within the federal space would offer more precise insights into their suitability and past success rates for similar engagements.

How does the $33.18 million contract value compare to similar IT support contracts for civilian HR functions in other federal agencies?

The $33.18 million contract value over two years for IT support services for civilian human resources is substantial, reflecting the complexity and importance of HR IT systems. To benchmark this value, one would compare it to contracts of similar scope and duration awarded by other large federal agencies (e.g., GSA, HHS, DHS) for their civilian HR IT support. Factors such as the number of users supported, the specific services included (e.g., help desk, system maintenance, cloud migration), and the level of customization required would influence comparability. Without access to a detailed database of comparable contracts, it's difficult to definitively state if this represents a premium or a discount, but it aligns with the significant investments agencies make in maintaining robust HR IT infrastructure.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks for this contract include potential service disruptions, cybersecurity vulnerabilities, cost overruns (though mitigated by FFP), and contractor performance issues. Mitigation strategies typically involve robust performance work statements (PWS), Service Level Agreements (SLAs), regular performance reviews, and strong government oversight. The Firm Fixed Price (FFP) contract type shifts cost risk to Deloitte, incentivizing them to manage costs efficiently. Cybersecurity risks are managed through adherence to government security standards and protocols. The Department of the Army's contracting and program management teams are responsible for ongoing monitoring and risk management throughout the contract's life cycle.

How effective is the 'full and open competition' approach in ensuring optimal value for taxpayer dollars in this IT support context?

The 'full and open competition' approach is generally considered highly effective in ensuring optimal value for taxpayer dollars, especially for complex IT support services. By allowing all responsible sources to bid, it fosters a competitive environment that drives down prices and encourages innovation. This method maximizes the pool of potential offerors, increasing the likelihood of finding a contractor that can provide high-quality services at a competitive rate. While the data doesn't specify the number of bidders, the process itself is designed to promote price discovery and ensure that the government receives the best possible value proposition. The success of this approach is contingent on a well-defined scope of work and rigorous evaluation criteria.

What are the historical spending patterns for civilian human resources IT support within the Department of the Army or DoD?

Historical spending patterns for civilian human resources IT support within the Department of the Army and the broader DoD are likely characterized by consistent, significant investments. Agencies continuously require robust IT infrastructure to manage their large civilian workforces, encompassing payroll, benefits, talent management, and training. Spending typically involves a mix of sustainment for existing systems and investments in modernization or new capabilities, often driven by evolving technology and federal mandates. Contracts for such services are often multi-year and can range from tens to hundreds of millions of dollars, depending on the scope and scale of the agency's HR IT ecosystem. Analyzing past contract awards and spending trends would reveal the typical contract vehicles, durations, and average annual expenditures for these critical services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Touche Tohmatsu Limited

Address: 1919 N LYNN ST, ARLINGTON, VA, 22209

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,176,694

Exercised Options: $33,176,694

Current Obligation: $33,176,694

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $1,284,099

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J18DA018

IDV Type: IDC

Timeline